Utah Admin. Code R590-171-6 - Conditions for Placing Insurance with a Surplus Lines Insurer
Placement of insurance with a surplus lines insurer is subject to Subsections (1) through (3). All information relating to the placement of insurance pursuant to Section 31A-15-103 shall be made available to the commissioner upon request.
(1) Insurance coverages and classes included
on the export list may be placed with a surplus lines insurer.
(2)
(a)
Insurance coverages and classes not included on the export list may be placed
with a surplus lines insurer only if:
(i) a
good faith effort is made to place the insurance with an admitted insurer that
the producer believes will write the type of coverage or class of insurance
involved consistent with the following:
(A)
the insurance cannot be obtained due to underwriting reasons, or the insured
requires specific terms and conditions of coverage that are unavailable through
an admitted insurer;
(B) placement
with a surplus lines insurer solely to obtain a better price does not
constitute good faith unless the producer demonstrates that the price quoted by
the admitted market is excessive under Subsection
31A-19a-201(2);
and
(C) the inability to place
insurance through an admitted insurer with whom the producer has an established
relationship is not an exception to the obligation to place the insurance with
an admitted insurer; and
(ii) the producer documents the good faith
efforts made to place the insurance with an admitted insurer.
(b)
(i) The good faith effort documentation in
Subsection (2)(a)(ii) shall include a record of the efforts made to place the
insurance together with a written explanation confirming that the effort is
made in good faith.
(ii) The good
faith effort documentation shall be maintained in the surplus lines producer's
and the originating producer's files for at least three years from the
inception date of coverage or renewal.
(3) An exempt commercial purchaser may
purchase commercial insurance from the surplus market.
Notes
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